Construction employment increased by 37,000 in March and 301,000 for the year to date, while construction spending in February logged a solid year-over-year increase despite a decline compared with January, according to an analysis by the Associated General Contractors of America. AGC officials said the new jobs and spending are indications that the industry is steadily expanding to meet growing demand.
“These two reports confirm that demand for construction is robust and well-balanced among residential, private nonresidential and public segments,” said Ken Simonson, AGC’s chief economist. “Compared with the same month a year ago, the industry is adding workers at more than double the rate of the overall economy, and construction spending continues to rise at a double-digit pace.”
Construction employment totaled 6,672,000 in March, the most since December 2008, and is up by 301,000 jobs compared to a year ago, a 4.7-percent increase. The rate of increase is more than double the 2 percent hike in total nonfarm payroll employment since March 2015. Residential construction – comprising residential building and specialty trade contractors -- increased by 13,400 jobs in March and by 166,000 or 6.8 percent compared to a year ago.
Nonresidential construction – building, specialty trades, and heavy and civil engineering construction firms – added 23,900 jobs for the month and 134,800 jobs compared to March 2015, a 3.4-percent increase.
Construction spending in February totaled $1.144 trillion at a seasonally adjusted annual rate, 0.5 percent below the upwardly revised January total but 10.3 percent higher than in February 2015, Simonson said. Private residential spending jumped 0.9 percent and 10.7 percent compared to February 2015. Spending on multifamily residential construction increased 0.9 percent for the month and 24.1 percent year over year, while single-family spending increased 1.2 percent from January and 10.6 percent compared to February 2015.
